Inovio Pharmaceuticals NasdaqGS:INO Stock Report

INOVIO Announces Survival Results for INO-5401 + INO-9012 in Combination with Libtayo(R) (cemiplimab) in Patients with Newly Diagnosed GBM

INOVIO announced results from the company's novel Phase 1/2 trial of INO-5401 and INO-9012 in combination with PD-1 inhibitor Libtayo(R) (cemiplimab) in the treatment of newly diagnosed glioblastoma (GBM), including encouraging median overall survival (OS) data from fifty-two subjects. Median OS duration in unmethylated MGMT (Cohort A) was 17.9 months. Median OS data in MGMT Methylated patients (Cohort B) are being presented for the first time, at a median of 32.5 months, which compares favorably to historical comparisons (23.2-25 months). Overall, INO-5401 + INO-9012 is demonstrated to be tolerable and immunogenic when administered with Libtayo and RT/TMZ (radiation and temozolomide) to newly diagnosed GBM patients. Notably, INO-5401 elicited antigen-specific T cells that may infiltrate GBM tumors. The data from this study was selected to be presented in an oral presentation by Dr. David Reardon on, June 6, 2022, at the 2022 American Society of Clinical Oncology (ASCO) at the McCormick Place Convention Center in Chicago, Illinois. The adverse event profile was consistent with known single-agent (INO-5401, INO-9012, EP or Libtayo) events; most events were <=Grade 2 and no related events were Grade >=4. Median OS durations in Cohorts A and B were 17.9 months (95% CI 14.5-19.8) and 32.5 months (95% CI 18.4-not reached), respectively. Flow cytometry revealed activated, antigen specific CD4+CD69+PD1+ and CD8+CD69+PD1+ T cells, the latter with lytic potential as defined by presence of perforin and granzymeA. Both subsets exhibited HR < 1.0 and p < 0.05 when accounting for a 0.1% T cell frequency change, translating to a 23% and 28% reduced risk of death at 18 months, respectively.

Consensus forecasts updated

The consensus outlook for 2022 has been updated. 2022 revenue forecast fell from US$2.78m to US$2.12m. EPS estimate increased from -US$1.38 to -US$1.22 per share. Biotechs industry in the US expected to see average net income decline 52% next year. Consensus price target down from US$9.57 to US$5.00. Share price fell 20% to US$1.99 over the past week.

INOVIO Announces Board Changes

First quarter 2022 earnings: EPS and revenues miss analyst expectations

First quarter 2022 results: US$0.36 loss per share (down from US$0.27 loss in 1Q 2021). Net loss: US$79.1m (loss widened 45% from 1Q 2021). Revenue missed analyst estimates by 70%. Earnings per share (EPS) also missed analyst estimates by 4.9%. Over the next year, revenue is forecast to grow 1,255%, compared to a 31% growth forecast for the industry in the US. Over the last 3 years on average, earnings per share has fallen by 3% per year but the company’s share price has fallen by 20% per year, which means it is performing significantly worse than earnings.

Price target decreased to US$9.57

Down from US$12.75, the current price target is an average from 6 analysts. New target price is 246% above last closing price of US$2.77. Stock is down 61% over the past year. The company is forecast to post a net loss per share of US$1.38 next year compared to a net loss per share of US$1.45 last year.